ArcBest, the supply chain logistics provider based in Fort Smith that operates ABF Freight, will acquire MoLo Solutions of Chicago, the company announced Wednesday.
With the acquisition, ArcBest will become a top 15 U.S. truckload broker with access to more than 70,000 carrier partners, it said. MoLo has experienced impressive growth since its founding in 2017. Revenue hit $274 million in 2020, an increase of more than 100 percent over the previous year. The company expects revenue of approximately $600 million in 2021.
Terms of the deal include a cash payment at closing of $235 million from available funds, subject to post-closing adjustments and the potential for additional cash consideration based on achievement of targets for the years 2023 through 2025, according to a press release. The acquisition is expected to close in the fourth quarter of 2021.
ArcBest officials expect the acquisition to accelerate asset-light business growth through improved ability to serve larger customers and expanding access to truckload capacity partners; expand revenue opportunities through increased cross-selling potential, better ability to secure new customers and a strong presence in the logistics innovation hub of Chicago; and enhance shareholder value including revenue and earnings growth.
In a statement, ArcBest Chairman, President and CEO Judy McReynolds said, “We are pleased to add MoLo’s significant capabilities and talent to our truckload brokerage offering, allowing us to better meet the critical needs of our customers, deliver comprehensive supply chain solutions and accelerate our company’s continued growth. Since its founding four years ago, MoLo has built a strong foundation and reputation for excellence based on trusted customer and carrier relationships, as well as a proven ability to offer unsurpassed service. Since we began discussing a possible transaction several months ago, it became clear what a great fit MoLo was with ArcBest.”
Stephens, Inc. of Little Rock acted as financial advisor to ArcBest for the transaction.